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Background

Some companies have obligations to decommission assets or for environmental rehabilitation that are recognised as provisions under IAS 37Provisions, Contingent Liabilities and Contingent Assets. In some cases, the company contributes to a fund established to meet the costs of the decommissioning or environmental rehabilitation. The fund may be set up to meet the decommissioning costs of a single contributor or for several contributors.

IFRIC considered how interests in these funds should be accounted for.

Current status of the project

This project has been completed. IFRIC 5Rights to Interests Arising from Decommissioning, Restoration and Environmental Funds was issued on 15 December 2004.